European stocks open weak and mixed on Fed day
Weak and mixed start for European stock markets on the day the Fed will announce its long-awaited decision on rates. Tonight, the Governing Council of the US bank is expected to begin the turnaround on rates with the first cut in four years. Bets on a more aggressive cut of 50 basis points are increasing among operators. In early trading in London, the FTSE 100 index lost 0.16% to 8,296.89 points, in Frankfurt the Dax rose 0.08% to 18,746.15 points and in Paris the Cac40 advanced 0.04% to 7,490.69 points. At Piazza Affari, the FTSE MIB index marked +0.09% to 33,809.55 points.
Milan Stock Exchange: Opens slightly moved, Ftse Mib index +0.09%
Piazza Affari starts weak and uncertain, in line with other European stock exchanges, in view of this evening’s Fed. The Ftse Mib index moves in early trading just above parity at +0.09% at 33,809.55 points. Investors are now taking for granted a first easing of monetary tightening in four years. In the futures market, traders are now betting at 63% that the central bank will raise rates by half a percentage point today, down from 70% before the latest macro data, while the odds of a 25-point cut are at 35%, compared with 66% last week.
Featured on the Milanese price list Leonardo +1.56%, Generali +1.01%, A2A +0.53% and Pirelli +0.63%. Bank stocks did well, with Banco Bpm +0.83%, Mediobanca +0.63%, Intesa +0.43%, Unicredit +0.43%, Unipol +0.39%. Among energy stocks, Enel +0.17%, Terna +0.10%, Eni +0.08%. Campari, on the other hand, is down, losing more than 5% after the resignation of CEO Matteo Fantacchiotti “for personal reasons”. Stm -0.9%, Moncler -0.75%, Diasorin -0.65%, Iveco Group -0.7% also did poorly. Tim dropped by 0.08%.
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